- The CJEU ruled that customer loyalty points, like those in Lyko’s scheme, do not qualify as VAT-relevant vouchers but are instead treated as discounts on future purchases.
- Such loyalty points fall outside the EU voucher regime, meaning VAT is charged on the full price of the initial purchase, and the taxable amount is reduced only when the discount is redeemed.
- Unredeemed points or discounts have no independent VAT consequences.
- Schemes where points can be used as full or partial payment and suppliers are contractually obliged to accept them may still fall under voucher rules, requiring more complex VAT analysis.
- Organisations issuing or accepting vouchers or similar instruments should reassess their VAT treatment in light of this judgment.
Source: pwc.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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